FTSE At New Record Highs After UK Data
UK GDP Bounces Back
The FTSE is continuing to push higher on Thursday, on track to end the second trading week of the year in the green as investor sentiment bolsters prices further. The index is deriving plenty of support despite a softening in BOE easing expectations today on the back of better-than-forecast US growth data. The UK was seen unexpectedly returning to growth in November with monthly GDP rising 0.3%, up sharply from the prior month’s -0.1% reading and well above the 0.1% the market was looking for. The breakdown of the data shows gains across the board expect for construction activity which fell by 1.3% though this is in line with seasonal expectations.
Cross-Sector Boost
Despite the data and its impact on BOE expectations, risk sentiment remains firmly grounded today with broad gains across a variety of sectors. Healthcare and miners have been the key leaders today with the latter boosted by stronger commodities prices this week headline by the gains we’ve seen in copper which hit fresh record highs earlier in the week.
US/Iran Risk Softens
Risk sentiment is also being buoyed today by news that the US has paused an anticipated military strike on Iran after Iran offered assurances that it will end violence against protesters. The news has seen better action in risk assets across the board with gains set to remain while the backdrop remains supportive and the threat of conflict continues to reduce.
Technical Views
The rally has seen price continuing to extend higher following the breakout above 9,936 in the final days of 2025. While above this level focus is on a continuation higher with price currently testing the 1.27% fib extension, eyeing 10,495 (1.61% extension) as the next bull target. However, worth noting that we are seeing bearish divergence in momentum studies suggesting potential correction risks so bulls should be wary of any reversal candles/patterns forming.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% and 73% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.